In calculating 4-year centred moving averages for yearly data, the first centred moving average is placed against the
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Third year
The first 4-year moving average (years 1 to 4) falls in the middle of the 2nd and 3rd years. The second one (years 2 to 5) falls in the middle of the 3rd and 4th years.
Centring takes the mean of these two neighbouring averages. It lies halfway between the two positions, that is, exactly at the 3rd year.